2020
DOI: 10.3390/en13071567
|View full text |Cite
|
Sign up to set email alerts
|

The Valuation of the Operational Flexibility of the Energy Investment Project Based on a Gas-Fired Power Plant

Abstract: This paper presents an attempt to the valuation of the operational flexibility of the energy investment project based on the example of combined cycle gas turbine (CCGT). For this purpose, the real options approach (ROA), net present value (NPV) method, and the Monte Carlo (MC) simulation have been used. Motivations to take up such a topic result from the fact that traditional valuation methods neglect flexibility embedded in CCGT assets. Operational flexibility was defined as the switching option to dynamical… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
1
1
1
1

Citation Types

0
6
0

Year Published

2020
2020
2024
2024

Publication Types

Select...
8
2

Relationship

0
10

Authors

Journals

citations
Cited by 25 publications
(6 citation statements)
references
References 44 publications
0
6
0
Order By: Relevance
“…Figure 4 on the right shows the rule and the technologies that are applied. The model so far does not explicitly model operational flexibilities such as required time for restarts but this could be extended in future research, e.g., using an approach as described in Kryzia et al [42], including the real options approach, the net present value method, and Monte Carlo simulations.…”
Section: Calculation Of Innochp Capacity Built Upmentioning
confidence: 99%
“…Figure 4 on the right shows the rule and the technologies that are applied. The model so far does not explicitly model operational flexibilities such as required time for restarts but this could be extended in future research, e.g., using an approach as described in Kryzia et al [42], including the real options approach, the net present value method, and Monte Carlo simulations.…”
Section: Calculation Of Innochp Capacity Built Upmentioning
confidence: 99%
“…Then Abadie [30] continued their studies on valuation of an operating coal-fired power station and a natural gas with the use of switching options exercised in cases when the electricity price was higher than variable costs (emissions, fuel, operation and maintenance). An interesting concept on switching option concerning CCGT (shutting down and restarting of gas-fired blocks) was developed by Kryzia et al [31]. Other papers on fuel switch options were written lastly by Kujanpää and Pursiheimo [32] (switching from coal to biomass, natural gas to biomass, fuel oil to pyrolysis oil), Han et al [33] (replacing coal with alternative fuels-natural gas, biomass, oil, electric boilers), Ghoddusi [34] (option to change gasoline at times to crude oil), Elias et al [35], Fan et al [36], and other authors.…”
Section: Literature Reviewmentioning
confidence: 99%
“…In [26] gas turbine power plant is analyzed among others for simultaneous production of electricity by combining steam Rankine cycle using heat recovery steam generator (HRSG) with presentation of economic and environmental benefits. In [27] the authors present an attempt to the valuation of the operational flexibility of the energy investment project based on the example of combined cycle gas turbine (CCGT). For this purpose, the real options approach (ROA), net present value (NPV) method, and the Monte Carlo (MC) simulation have been used.…”
Section: Figurementioning
confidence: 99%